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NEW QUESTION 50
An internal auditor is evaluating controls over the purchasing function. The function includes the material control department, the purchasing department, and the receiving department. Which of the following is true regarding the presentation of the process flow among the three departments?

  • A. A horizontal flowchart, with the departments described across the top and the process flowing horizontally, would be most useful.
  • B. Flowcharts are not useful for documenting process flow.
  • C. A vertical flowchart of each department, showing inputs at the top and outputs at the bottom, would be most useful.
  • D. Both a flowchart and narratives are needed due to the number of departments involved.

Answer: A

Explanation:
Section: Volume B

 

NEW QUESTION 51
Which of the following evaluation criteria would be the most useful to help the chief audit executive determine whether an external service provider possesses the knowledge, skills, and other competencies needed to perform a review?

  • A. The financial interest the service provider may have in the organization.
  • B. Compensation or other incentives that may be applicable to the service provider.
  • C. The relationship the service provider may have had with the organization or the activities being reviewed.
  • D. The service provider’s experience in the type of work being considered.

Answer: D

 

NEW QUESTION 52
Which of the following is used to identify and prioritize critical business applications to determine those that must be restored and the order of restoration in the event that a disaster impairs information systems processing?

  • A. System backup analysis.
  • B. Risk analysis.
  • C. Vendor supply agreement analysis.
  • D. Contingent facility contract analysis.

Answer: B

 

NEW QUESTION 53
……

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